Richemont full-year profit more than doubles, despite geopolitical headwinds

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By Joshua Kirby


Compagnie Financiere Richemont AG on Friday posted strong sales growth and profitability for fiscal 2022, despite geopolitical headwinds in the year’s final quarter.

Sales for the year ended March 31 rose by 44% at constant currency to 19.18 billion euros ($20.30 billion), while operating profit more than doubled to EUR3.39 billion on a much higher operating margin of 17.7%, the Swiss luxury-goods group said. Net profit rose 61% to EUR2.08 billion.

The growth was driven by the core jewelry division, which booked 47% top-line growth and a margin of 34.4%, Richemont said.

Fourth-quarter sales saw only a slight deceleration, to 27% on-year growth, Richemont said, despite pressures from pandemic-forced store closures in China, and the Russia-Ukraine conflict. Suspension of commercial activity in Russia entailed a EUR168 million hit to operating profit for the year, Richemont said.

Despite the challenging environment ahead, the company feels secure heading into the new fiscal year, thanks in part to its EUR5.3 billion net cash position, Chairman Johann Rupert said.

Richemont will propose a dividend for the year of 2.25 Swiss francs ($2.32) an A share, along with an additional special dividend of CHF1 an A share, it said.


Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby


This article was originally published by Marketwatch.com. Read the original article here.

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